Contracts were signed between landowner Hemsworth Town Council and developer Saul Construction at the end of last month.
And the developer has been granted final approval by Wakefield Council to build 147 houses and 10 retirement apartments on the Kirkby Road complex.
Permission for reserved matters on appearance, landscaping, layout and scale was granted at a planning meeting on Thursday, meaning Saul Construction can now begin building on the land.
Hemsworth Town Council has used the money raised from the sale to fund a new community centre on Bullenshaw Road and replacement football facilities on Sandygate Lane.
The two facilities have already been completed by Saul Construction as part of a turn-key agreement.
Opening dates for both are expected to be announced within the next few weeks.
The contract signing came after many months of legal wrangling between the parties involved.
Proposals for the deal were first communicated to community groups and the public back in April 2007.
The former Hemsworth Community Action Group was also set up to protest against the sale of the complex.
Members applied for a judicial review but were refused by a High Court judge.
Hemsworth man Jim Kenyon is currently in the process of applying for a judicial review against Wakefield Council’s planning department on the basis that the football facilities are not up to scratch and do not comply with a draft 106 legal agreement.